What Is Production Order In SAP

A production order captures information such as which material is to be processed, at which location, at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled.

As soon as a planned order or other request is generated from material requirements planning, the information is passed on to shop floor control; the order-relevant data is also added to ensure complete order processing.

Production orders are used to control production within a company and also to control cost accounting.

Uses of Production Order

You can use the production order document to specify:

  • What product need to be produced?
  • When the production is going to take place?
  • Which capacity is able to process the order?
  • How much production costs will be incurrred?
Creation of Production Order

Production orders can be created in the following ways:

  • From customer requirement generated in requirements planning, that is, by converting a planned order to a production order.
  • Using an assembly order.
  • Without any previous requirement, that is, by creating it manually by Production Planning users.
Background Process in Production Order

When a user create a production order, the following actions are carried out by the system:

  • A routing is selected, its operations and sequences are transferred to the production order.
  • The bill of materials is exploded and the items in the bill of material are transferred to the order.
  • Reservations are generated for bill of material items held in stock.
  • The planned costs for the order are generated.
  • The capacity requirements are generated for the work centers.
  • Purchase requisitions are generated for non-stock items and externally-processed operations.
What is the use of production order without material?

It's widely used for capturing the rework activities (components and activity cost), both for final rework and in-process rework activities.

Transaction code for Production Order

  • CO01 - With Material
  • CO07 - Without Material
  • CO40 - From Planned Order
  • CO41 - Collective Conversion of Planned Orders
  • CO08 - For Sales Order
  • CO10 - For Project
Initial Screen of Create Production Order 

Create Production Order

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